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  • FIRST POST
    • MSE Guy
    • By MSE Guy 7th Sep 10, 9:53 AM
    • 1,628Posts
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    MSE Guy
    MSE News: Direct debit payments could save you 435 a year
    • #1
    • 7th Sep 10, 9:53 AM
    MSE News: Direct debit payments could save you 435 a year 7th Sep 10 at 9:53 AM
    This is the discussion thread for the following MSE News Story:

    "Many utility and financial firms offer discounts, or avoid adding charges, to those who pay using this method ..."


Page 1
    • JimmyTheWig
    • By JimmyTheWig 7th Sep 10, 11:11 AM
    • 11,851 Posts
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    JimmyTheWig
    • #2
    • 7th Sep 10, 11:11 AM
    • #2
    • 7th Sep 10, 11:11 AM
    Not paying your TV licence in one go can also mean higher charges.
    Is this true? We pay 1/12th the cost each month.
    Is this to do with paying half in advance and half in arrears?
    • molerat
    • By molerat 7th Sep 10, 11:36 AM
    • 20,656 Posts
    • 14,918 Thanks
    molerat
    • #3
    • 7th Sep 10, 11:36 AM
    • #3
    • 7th Sep 10, 11:36 AM
    For instance, paying for insurance every month rather than in one go costs more
    Not always. Please give factual information rather than red top headlines.
    https://www.helpforheroes.org.uk/give-support/donate-now/
  • contribute good news
    • #4
    • 7th Sep 10, 12:33 PM
    Check payment policy offered by company
    • #4
    • 7th Sep 10, 12:33 PM
    I think it is very wise to check the most suitable payment policy offerd by every company in order to avoid further dissapointments.
    • EmehEm2005
    • By EmehEm2005 7th Sep 10, 12:37 PM
    • 104 Posts
    • 56 Thanks
    EmehEm2005
    • #5
    • 7th Sep 10, 12:37 PM
    • #5
    • 7th Sep 10, 12:37 PM
    Is this true? We pay 1/12th the cost each month.
    Is this to do with paying half in advance and half in arrears?
    Originally posted by JimmyTheWig
    As far as I can see there are no extra charges for paying by various different methods, but you may have to pay the full fee of 145.50 at, for example, a PayPoint outlet or by phone with a debit or a credit card.

    See links below for further information
    https://www.tvlicensing.co.uk/pay-for-your-tv-licence/payment-methods/

    http://www.tvlicensing.co.uk/pay/payment-methods/viewpaymentcontent.aspx?id=pay1&iqdocumentid=pay1

    http://www.tvlicensing.co.uk/about/media-centre/news/tv-licensing-invites-18-million-customers-to-pay-NEWS11/
    • EmehEm2005
    • By EmehEm2005 7th Sep 10, 12:43 PM
    • 104 Posts
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    EmehEm2005
    • #6
    • 7th Sep 10, 12:43 PM
    • #6
    • 7th Sep 10, 12:43 PM
    Ebico (http://www.ebico.co.uk/ http://www.ebico.co.uk/gaspricework.php http://www.ebico.co.uk/elecrates.php) charge the same whatever method you pay by.
    • EmehEm2005
    • By EmehEm2005 7th Sep 10, 12:53 PM
    • 104 Posts
    • 56 Thanks
    EmehEm2005
    • #7
    • 7th Sep 10, 12:53 PM
    • #7
    • 7th Sep 10, 12:53 PM
    Not always. Please give factual information rather than red top headlines.
    Originally posted by molerat
    If you read the article you will see that there are a lot of "cans" and "coulds" ("For instance, paying for car or home insurance every month rather than in one go can cost more." "Direct debit payments could save you 435 a year.") which is standard practice in responsible journalism - unlike red-top newspaper stories.
    • molerat
    • By molerat 7th Sep 10, 1:08 PM
    • 20,656 Posts
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    molerat
    • #8
    • 7th Sep 10, 1:08 PM
    • #8
    • 7th Sep 10, 1:08 PM
    The article has been edited since my post, the quote I used is a cut and paste.
    https://www.helpforheroes.org.uk/give-support/donate-now/
    • davidgmmafan
    • By davidgmmafan 7th Sep 10, 2:17 PM
    • 1,446 Posts
    • 522 Thanks
    davidgmmafan
    • #9
    • 7th Sep 10, 2:17 PM
    • #9
    • 7th Sep 10, 2:17 PM
    "For instance, paying for insurance every month rather than in one go costs more"

    is not that irresponsible when you consider some insurers advertize saying NO CHARGE FOR PAYING MONTHLY. Clearly it is a common practice.

    PS there should be a warning with this to state DD's can save money, but they can seriously damage your wealth if things go wrong. They are good savings if you are reasonably good at keeping an eye on things, if not you could find yourself in an unstoppable snowball of charges courtesy of your bank.
    Last edited by davidgmmafan; 07-09-2010 at 2:33 PM. Reason: PS
  • karatedragon
    Another way to save even more is by not paying by Direct Debit. By this I mean simply do not buy Sky, Cable, Phone. You will not only save the Direct Debit Saving but also the cost of the service too.

    Also you can negotiate with the provider. I will NEVER pay by direct debit but threatened to leave Vodafone due to a non DD charge. They gave me a reduction in line rental so I would stay and not have to incure the charge.

    Vodafone wanted to charge me 3.00 plus VAT to pay by Bank Transfer. How on earth does this cost 3.00? They even admitted to me that it does not cost anything for a Bank Transfer to go in their account.

    I think Non Direct Debit charges should be outlawed. You do not have multiple charges for items in shops. You do not have separate prices of items for paying by cash, credit card or debit card. Granted some places to levy a charge for credit cards but I am talking in the main.
    Last edited by karatedragon; 07-09-2010 at 3:25 PM.
    • Cardew
    • By Cardew 7th Sep 10, 4:05 PM
    • 27,841 Posts
    • 13,711 Thanks
    Cardew

    I think Non Direct Debit charges should be outlawed. You do not have multiple charges for items in shops. You do not have separate prices of items for paying by cash, credit card or debit card. Granted some places to levy a charge for credit cards but I am talking in the main.
    Originally posted by karatedragon
    I think you might be 'looking at this from the wrong end of the telescope'.

    With most companies the 'normal' or 'regular' price is for the 'pay on receipt of bill'. In the case of gas and electricity with quarterly billing this means you get 3 months credit.

    Because it suit companies to have regular cash flow and the accounts are simpler to administer, they offer a discount on the regular price.

    You have a choice - pay on receipt of bill and pay the full price, or chose to have a sizeable discount for paying by direct debit.

    The discounts normally dwarf any lost interest - so surely any money saver will elect for payment by DD.

    Also some bills are paid in advance e.g. Council Tax, Phone line rental and payment by DD enable you to spread this out.

    For me the sheer convenience of paying by DD(and saving in postage etc) means I pay by DD even if there is no discount.
  • karatedragon
    I think you might be 'looking at this from the wrong end of the telescope'.

    With most companies the 'normal' or 'regular' price is for the 'pay on receipt of bill'. In the case of gas and electricity with quarterly billing this means you get 3 months credit.

    Because it suit companies to have regular cash flow and the accounts are simpler to administer, they offer a discount on the regular price.

    You have a choice - pay on receipt of bill and pay the full price, or chose to have a sizeable discount for paying by direct debit.

    The discounts normally dwarf any lost interest - so surely any money saver will elect for payment by DD.

    Also some bills are paid in advance e.g. Council Tax, Phone line rental and payment by DD enable you to spread this out.

    For me the sheer convenience of paying by DD(and saving in postage etc) means I pay by DD even if there is no discount.
    Originally posted by Cardew
    Your reasoning *may* be acceptable for utilities such as gas and electric but Sky, Mobiles, Cable are monthly and are collected by Direct Debit or money has to be received manually by a "due date". In this instance both methods of payment are receiving a period of "credit". It is grossly unfair to charge extortinate fees of say 3.00 if you pay by Bank Transfer which actually costs nothing. Also it does not cost 3.00 to process a cheque. My Uncle runs a small business and his bank charge 68p to pay a cheque in. Large companies like Sky I would imagine would have generous "deals" on their banking arrangements.

    Like I say I totally refused to pay Vodafone's Non Direct Debit charge and they clearly valued my custom enough to waive it. I do not pay anything by Direct Debit.
    • grumbler
    • By grumbler 7th Sep 10, 9:53 PM
    • 51,709 Posts
    • 21,932 Thanks
    grumbler
    Yet it doesn't always pay to use direct debit to pay certain bills in installments.
    For instance, paying for car or home insurance every month rather than in one go can cost more. Not paying your TV licence in one go can also mean higher charges.
    by Guy Anker
    Also, paying my council tax with a cashback credit card (instead of DD) saves me 1%.
    We are born naked, wet and hungry...Then things get worse.

    .withdrawal, NOT withdrawel ..bear with me, NOT bare with me
    .definitely, NOT definately ......separate, NOT seperate
    should have, NOT should of
    .....guaranteed, NOT guarenteed
    • Eco Miser
    • By Eco Miser 7th Sep 10, 11:02 PM
    • 3,444 Posts
    • 3,239 Thanks
    Eco Miser
    As far as I can see there are no extra charges for paying by various different methods, but you may have to pay the full fee of 145.50 at, for example, a PayPoint outlet or by phone with a debit or a credit card.

    See links below for further information
    https://www.tvlicensing.co.uk/pay-for-your-tv-licence/payment-methods/

    http://www.tvlicensing.co.uk/pay/payment-methods/viewpaymentcontent.aspx?id=pay1&iqdocumentid=pay1

    http://www.tvlicensing.co.uk/about/media-centre/news/tv-licensing-invites-18-million-customers-to-pay-NEWS11/
    Originally posted by EmehEm2005
    From the second link above:
    By paying quarterly the majority of your licence is paid for on a pay-as-you-go basis. This differs from our other instalment schemes, where at least half of the licence fee is collected in advance. As a result, quarterly payments incur a small premium of 1.25 per quarter which is included in your payment.
    So annual and monthly cost the same, but quarterly costs a fiver a year extra.
    Eco Miser
    Saving money for well over half a century
    • JimmyTheWig
    • By JimmyTheWig 8th Sep 10, 10:03 AM
    • 11,851 Posts
    • 11,393 Thanks
    JimmyTheWig
    With most companies the 'normal' or 'regular' price is for the 'pay on receipt of bill'.
    Originally posted by Cardew
    But more and more advertising these days quote prices and the small-print says "for customers paying by direct debit".
    • Rupert Bear
    • By Rupert Bear 8th Sep 10, 10:14 AM
    • 1,267 Posts
    • 630 Thanks
    Rupert Bear
    I pay most things by direct debit except for my Water and council tax. With water they offer no incentives and with council tax I pay monthly via credit card. There is no extra charge and as the card is a cash back card I get 1% cash back every March.
    • davidgmmafan
    • By davidgmmafan 8th Sep 10, 11:19 AM
    • 1,446 Posts
    • 522 Thanks
    davidgmmafan
    "I think Non Direct Debit charges should be outlawed. You do not have multiple charges for items in shops. You do not have separate prices of items for paying by cash, credit card or debit card. Granted some places to levy a charge for credit cards but I am talking in the main."

    Virgin Media are the worst offender. They charge 5/month for customers who don't pay by DD on the grounds that it costs them more. IKEA charge for credit card payments, claming there is a charge to them, they charge a whopping 50p. Who is right? I don't know because Virgin Media won't tell me. They claim it costs more than 5/month to process payments, but with no info how can you query this? I believe they arrive at the figure by including the fact that non dd customers are statistically more likely not to pay, and these leads to additional costs for the company. But if this is accepted I'm paying for other non-payment.

    I think all such charges should be outlawed unless there is some independant body who can (honestly) check if the charges ARE justified. We know it doesn't cost that much to accept payments, but OFCOM and the like see no difficulty as long as the charges are clearly stipulated.

    They DO appear in the marketting flyers you get but its just a joke. It'll give the price then say oh its this if you don't pay by DD, and this if you want a paper bill. And others are doing the same so competition is failing in thier regard.

    The Water company gives me 6 per year discount for DD I think. The council gives me none so I don't use direct debit for that, might cancel the water one too as its too much in thier favour. EG they now only send a six monthly statement, with no cost saving passed on to me the customer.
    • Cardew
    • By Cardew 8th Sep 10, 5:54 PM
    • 27,841 Posts
    • 13,711 Thanks
    Cardew
    But more and more advertising these days quote prices and the small-print says "for customers paying by direct debit".
    Originally posted by JimmyTheWig
    Isn't that what all advertising is about. It is much like savings accounts paying "up to 4.8%and you find that the 4.8% is for amounts over 250k and no withdrawls for x years.

    The bottom line is that you have 3 choices - pay by DD, pay on receipt of bill or not use the company.
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